RALEIGH - United States Attorney George E. B. Holding
announced that a jury in Raleigh, N. C. convicted XAVIER VIDAL
JENNETTE of conspiracy, wire fraud, and aggravated identity theft.
The jury returned its verdict Friday, following a week-long trial
in federal court before Senior United States District Judge W. Earl
Britt.

Three others had been charged and previously pled guilty in
this case: ANTHONY DURRAND WALLACE, age 36, of Raleigh, N. C.;
AIESHA DEMETRIA HORTON, age 30, of Raleigh, N. C.; and TOYA LENETTE
SADLER, age 30, of Washington, N. C. All three pled guilty to
conspiring with JENNETTE in an extensive identity theft ring in the
Raleigh, N.C. area.

JENNETTE, age 33, of the Washington, D. C. area, worked as the
Facilities Security Officer, or “FSO”, for a United States
government contractor in Alexandria, Virginia. The contractor
provided software and services to various government military and
intelligence agencies. As FSO, and with a “Top Secret” security
clearance, JENNETTE was entrusted with the personal identification
information of the contractor’s 120+ employees. The information
included social security numbers as well as information concerning
the employees’ security clearances.

The evidence at trial demonstrated that, when JENNETTE left
his employment with the contractor in late 2004, he stole the
personal information he had been entrusted with and brought it to
North Carolina. In North Carolina, JENNETTE, along with WALLACE,
HORTON, and SADLER, used the stolen information in a broad identity
theft scheme. The defendants launched the scheme by opening credit
accounts with cell phone companies and various “big box” retailers.
Many of the fraudulent applications were made over the internet,
but defendants were particularly successful in opening “instant
credit” accounts at the retailers. These “instant credit” accounts
allowed the defendants and their co-conspirators to begin using
fraudulently obtained accounts immediately.

Impersonating JENNETTE’S former colleagues, the defendants
obtained cell phones and cell phone services for their own use, and
defendants JENNETTE and WALLACE also obtained phones for the
purpose of “fencing” them to generate cash.

The defendants also obtained merchandise from the “big box”
retailers, again, both for personal use and for the purpose of
fencing them. Items fenced included televisions, videogame
systems, iPod music players, and chainsaws.

The jury found JENNETTE guilty on all six counts against him.
Sentencing of JENNETTE is scheduled for February, 2007. JENNETTE
is in custody pending sentencing.

“By stealing and using the large amount of personal
information entrusted to him, the defendant caused irreparable harm
to his victims,” said United States Attorney George E. B. Holding.
“We will aggressively prosecute these types of crimes.”

Investigation of the case was conducted by the United States
Secret Service, with assistance from the Wake County Sheriff’s
Office. Assistant United States Attorney Clay C. Wheeler
prosecuted the case for the United States.

News releases are available on the U. S. Attorney’s web page at
www.usdoj.gov/usao/nce within 48 hours of release.

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